8:31 am, March 27, 2025
UK new car production fell for the 12th month in a row in February with the SMMT bemoaning a lack of help for the industry in yesterday’s spring statement.
According to the trade body’s latest figures, a total of 82,178 new cars and commercial vehicles rolled off British production lines in the second month of the year.
The total represents an 11.6% drop on the same period last year, with industry experts pointing to model changeovers and plant restructuring as key reasons for the decline.
Overall, manufacturers turned out 10,787 fewer cars, vans, trucks, taxis, buses and coaches than in last February, marking an entire year of decline for vehicle production.
The UK market was down by a third with the EU remaining the largest market for UK car exports, taking just over half, followed by the US (19.7%) and China (6.3%).
Shipments to the EU and China fell by 9.6% and 10.9% respectively, while those to the US increased by 34.6%.
However, there are now fears that could also be in threat, following Donald Trump’s announcement of 25% tariffs on imported cars into the States.
When it came to electrified vehicles, production of battery electric, plug-in hybrid and hybrid cars fell by 5.6% last month but their share of production so far this year was 39.6% – up from 36% a year ago.
The figures were released just hours after Chancellor Rachel Reeves offered no support for the industry or consumers in yesterday’s spring statement.
The SMMT says the lack of assistance represents a ‘missed opportunity’ amid ‘worrying times’ for UK car makers.
Mike Hawes, SMMT chief executive, said: ‘These are worrying times for UK vehicle makers with car production falling for 12 months in a row, rising trade tensions and weak demand.
‘The market transition is not keeping pace with ambition and, while the industry can deliver growth – and green growth at that – it needs policies to deliver that reality.
‘It was disappointing to hear a spring statement that did nothing to alleviate the pressure on manufacturers and, moreover, confirms the introduction next month of additional fiscal measures which will actually dissuade consumers from investing.
‘Without substantive regulatory easements our manufacturing viability remains at risk and the UK’s transition to zero emission mobility under threat.’
‘Thousands of jobs at risk’
In response to the figures, trade union, Unite, says that the automotive industry is facing a ‘critical moment’.
Unite general secretary Sharon Graham said that ”thousands of jobs are at risk’ and called on the government to take action.
She said: ‘The UK auto industry is facing a critical moment, with thousands of jobs at risk.
The government must take action to stop the low-volume crisis from causing lasting damage to the sector.
Labour’s industrial strategy must provide a clear roadmap through the industry’s challenges, guaranteeing a just transition for auto workers.’
